UNCLAS SAN SALVADOR 002437
STATE FOR STATE/EB/TPP/MTA - EKOCH
STATE PASS USAID/LAC
STATE ALSO PASS USTR - HIRSH
USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN AND 4110/TCC
USDOC ALSO FOR 3134/ITA/USFCS/OIO/WH/PKESHISHIAN/BARTHUR
USDA FOR USDA/ITP/FAS/BERTSCH
E.O. 12958: N/A
TAGS: ECON ETRD ES
SUBJECT: TRADE AGREEMENT COMPLIANCE AND MONITORING IN EL SALVADOR
REF: STATE 152063
The following information is provided in response to reftel.
Â¶A. The Economic Section coordinates efforts at post to monitor
trade agreements and respond to trade barrier complaints, with
significant input from the Foreign Commercial Service, Foreign
Agricultural Service, Political Section, U.S. Agency for
International Development, and Department of Homeland Security. The
Front Office and Public Affairs Sections also have significant
roles, especially in developing and executing effective strategies
to encourage compliance when barriers are identified.
Â¶B. David Krzywda, Economic Officer, is the primary contact for
issues related to trade agreement compliance. Mary Boscia,
Commercial Attache, is the alternate contact.
Â¶C. The following are examples of trade compliance activities at
--For many years, post has worked extensively on compliance issues
related to intellectual property rights, first under the TRIPS
Agreement, and now under that agreement as well as CAFTA-DR.
Working with U.S. industry representatives, post is now supporting
efforts of the Public Health Council and Ministry of Economy to
implement the data protection and patent linkage provisions of
CAFTA-DR. Also in coordination with U.S. industry representatives,
post is working with local law enforcement to dismantle distribution
networks for copyright and trademark infringing goods.
--Post has provided extensive reporting related to Salvadoran
qualification for trade preferences under the Caribbean Basin
Initiative (CBI). Post has also participated in a number of
inspection activities in the textile and apparel sector to certify
compliance with CBI rules of origin.
--Currently, post is working with Washington-based USTR and USDA
officials to revise Salvadoran sanitary and phytosanitary (SPS)
regulations for poultry and eggs that unreasonably limit market
access for U.S. exporters. Post has also provided technical
assistance to Salvadoran authorities on SPS issues related to
systems equivalency for meat and poultry.
Â¶D. The following are examples of monitoring efforts at post:
--Post is working with Central Bank and other regulatory authorities
to ensure that legislation being prepared on securitization,
financial sector regulation, factoring, and leasing is consistent
with the CAFTA-DR financial services commitments.
--Maintaining contacts within the textile and apparel sector allows
post to monitor issues related to rules of origin for that sector.
--Post communicates regularly with government officials, NGOs, and
others on environmental and labor issues related to the
implementation of CAFTA-DR chapters on those topics. Post also
provides technical assistance in these areas in support of
--Working with U.S. express delivery companies, post is pressuring
customs authorities to establish expedited handling for certain
--The government proposes to expropriate a coffee plantation to
create a national park; post is monitoring the situation because a
U.S. company allegedly has a financial interest in the plantation.
--Post continues to monitor local reports on El Salvador's effort to
extend WTO approval for nonconforming Trade-Related Investment
Measures (TRIMs) that give tax breaks to exporters.